Automotive fluid storage systems manufacturer TI Fluid Systems said on Wednesday that it had achieved revenue of 787.0m during the first quarter, reflecting a 9.7% increase year-on-year.
TI Fluid stated revenues continued to pick up in line with a recovery in light vehicle production volumes during the period, noting that in Europe and Africa, revenue increased by 5.9% at constant currency and outperformed light vehicle production volume in the regions.
Asia Pacific revenues continued to be “strong” and increased by 49.5% at constant currency, while in North America, revenues dropped 5.2% at constant currency and “slightly” underperformed light vehicle production volume in the region.
The FTSE 250-listed group said FCS revenue increased by 10.9% at constant currency, primarily driven by the ramp-up of new BEV wins in Europe, while FTDS revenue increased 18.1% at constant currency, with the segment continuing to benefit from “successful business launches” in Asia Pacific and North America.
TI Fluid said: “The group has made a strong start to the year and the outlook guidance issued on 16 March 2021 remains unchanged. Annual global light vehicle production volumes are forecasted to continue to recover during 2021, and potentially return to pre-Covid levels by 2022.
“Despite this volatility, we remain confident that our full-year 2021 revenue will outperform global light vehicle production volumes and with these recovering volumes and the benefits arising from the restructuring program started in 2020, we continue to target a high single-digit adjusted EBIT margin. These earnings will support the Adjusted Free Cash Flow generation similar to pre-Covid levels and a resumption of the dividend policy targeting a payout ratio of 30% of adjusted net income.”
As of 0915 BST, TI Fluid shares were down 1.02% at 690.40p.
